The CEO of Notional revealed the reasons for choosing Arbitrum as Layer 2. Arbitrum stands out with its strong DeFi ecosystem, robust product progress, and user culture that closely aligns with Notional. Its leading position in product innovation and security, as well as its focus on DeFi, makes it the preferred platform for Notional, indicating long-term growth potential for both parties.
Notional CEO: Reasons for Choosing Arbitrum
With the release of Notional V3, the Notional protocol will make its debut on Layer 2. Launching on L2 has the potential to expand the usage of Notional, extend Notional’s leverage strategy supply, and promote protocol growth.
In an ideal world, if Notional had unlimited resources, it would exist on every L2. But in reality, limited resources mean that we need to choose one in the near term. Notional’s success depends on building a thriving ecosystem with other protocols, and each integration takes time and effort. We can’t do this in too many places at once. We need to focus on one L2.
Focus on one L2 means we need to choose the right one. If the L2 we choose fails to grow its ecosystem and user base, that failure will impact Notional’s growth. The L2 we choose must be highly utilized now and in the future, and there must be a large user base who find Notional’s products attractive.
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Why we choose Arbitrum (💙,🧡)
We evaluated our choices based on three main criteria:
- Traction: Does the L2 have significant usage and a strong DeFi ecosystem?
- Product: Is the L2 secure, and has the development team made steady progress in strengthening and decentralization technology?
- Culture: Does the user base of the L2 align with Notional’s product?
Arbitrum is a clear leader in these three criteria. This doesn’t mean it’s the “best” L2 or that any other L2 is bad. But it does mean that Arbitrum is currently the best choice for Notional. Let’s see why.
Traction
Arbitrum is the leading L2 in the metrics that Notional cares about. Arbitrum has the highest TVL and the largest DeFi ecosystem.
Here’s a comparison of total TVL on L2 Beat:
L2Beat
Here’s a comparison of TVL for each chain’s DeFi ecosystem on DeFiLlama (Arbitrum is in green):
Layer2 TVL
The significant traction that Arbitrum has gained in its L2 and DeFi ecosystem makes it a secure choice for Notional.
Products
Arbitrum has always been at the forefront in terms of products. This may be one of the main drivers of their success. They were not the first to handle rollup transactions, but they were the first to allow permissionless access to L2.
Since then, their leading position among optimistic rollup peers has only grown. According to L2 Beat, Arbitrum’s “risk pizza” is mainly green, with no red.
The recently announced BOLD by Arbitrum further advances their progress and provides fully permissionless state verification. This product improvement solidifies Arbitrum’s position as the most secure L2. It also demonstrates their ability to release upgrades faster than competitors to improve their products and benefit their DeFi ecosystem.
Culture
Arbitrum’s user community is highly focused on DeFi and yield. This aligns well with us. Notional’s leverage products are best suited for active user groups willing to take some risks to maximize their profits.
We attribute this culture to Arbitrum’s team adopting a hands-off and neutral attitude towards their L2. In our view, the Arbitrum team has been focused on their product without giving special preferences or choosing winners.
We believe that Arbitrum’s neutrality and emphasis on the product rather than marketing have helped create a self-reinforcing organic community of users and projects. Arbitrum is a strong team that has attracted powerful projects. This is good for Notional as it creates more opportunities for protocol integration and makes Arbitrum a good choice for long-term growth.
Launching on Arbitrum
The release date of Notional V3 on Arbitrum is rapidly approaching. Over the past few weeks, we have been putting the final touches on the smart contracts and the Notional V3 UI, and we are almost ready to publicly launch our invite-only Beta version on Arbitrum.
We are extremely excited to unveil what we have built and open access to unprecedented leverage yield opportunities that we will offer. Choosing an L2 is a significant decision, and developers now have more choices than ever before. We believe that Arbitrum’s traction, their commitment to the product, and their community’s DeFi and decentralized culture make them the best L2 choice for Notional. We are thrilled to bring Notional V3 to Arbitrum’s L2!
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